The parent company of national franchise James’ Home Service has gone into liquidation and moved to terminate all master franchise agreements with its over 200 franchisees.
Ann Meagher of SV Partners was appointed as liquidator of Rushlyn Pty Ltd, which trades as James’ Home Services, in April this year.
James’ Home Services has been trading since 1993 mainly in Queensland but with a presence in NSW, Victoria and Western Australia.
It has over 200 franchisees which operate James Home Cleaning, James Carpet Cleaning, James Mobile Car Cleaning, James Mobile Dog Grooming, James Lawn Mowing, Window & Exterior Cleaning, James Pest Control, James Laundry & Ironing and James Coffee franchises.
This week franchisees were sent a letter by Meagher requesting the mutual termination of the master franchise agreements between James’ Home Services and their companies and themselves personally.
The letter warns the termination means both parties agree they have no claim against the other.
“This does not, however, eliminate the requirement for any outstanding State and Regional Master’s fees up to the date of termination to be remitted as per the franchise agreement,” the letter states.
Following the liquidation, James’ Home Services entered into a contract to be sold to JHS Franchising Pty Ltd, which SmartCompany understands is a company controlled by Robert James, the owner of James’ Home Services.
But this sale has now been terminated after being blocked by James’ Home Services secured creditor.
Former James’ Home Services franchisee, Colin Dorrian, told SmartCompany that, essentially, James’ Home Services is now no longer operational, with 200 or more franchisees left with potentially nothing but a load of cleaning or mowing equipment.
“He is doing this while not paying his creditors,” Dorrian says.
“To basically let the company run dry and get wound up leaving the creditors in the lurch is certainly not in the public interest for that to be allowed to happen.”
The James’ Home Services website continues to advertise for new franchisees, promising earnings of up to $2000 a week.
SmartCompany contacted Robert James and SV Partners but both declined to comment.
Cara Waters is the editor of SmartCompany. Cara was previously a senior reporter at the Financial Times website FT Adviser in London and has also worked for The Sunday Times.
